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If total sales during the year amounted to Rs. 100000 , cash sales Rs. 200000 and outstanding debtors at the end of the year were Rs. 30000 , then cash received from the debtors during the year will be ?
Most Upvoted Answer
If total sales during the year amounted to Rs. 100000 , cash sales Rs....
Calculation of Cash Received from Debtors
Total Sales: Rs. 100000
Cash Sales: Rs. 200000
Outstanding Debtors: Rs. 30000
To calculate the cash received from debtors during the year, we need to use the following formula:
Cash Received from Debtors = Total Sales - Cash Sales - Outstanding Debtors
Substituting the given values in the formula, we get:
Cash Received from Debtors = Rs. 100000 - Rs. 200000 - Rs. 30000
Cash Received from Debtors = Rs. -130000
The negative value indicates that there was no cash received from debtors during the year. Instead, the outstanding debtors increased by Rs. 30000.
Explanation
Total Sales: This is the total amount of sales made during the year. It includes both cash and credit sales.
Cash Sales: This is the amount of sales made in cash. It does not include credit sales.
Outstanding Debtors: This is the amount of money owed by customers who have purchased goods on credit but have not yet paid for them.
Cash Received from Debtors: This is the amount of money received from customers who have purchased goods on credit and have paid for them during the year.
In this case, the total sales were Rs. 100000, but the cash sales were Rs. 200000. This means that a significant portion of the sales was made on credit. At the end of the year, there were outstanding debtors of Rs. 30000, which means that customers had not paid for goods worth Rs. 30000.
When we calculate the cash received from debtors, we subtract the cash sales and outstanding debtors from the total sales. In this case, the result is negative, which means that there was no cash received from debtors during the year. Instead, the outstanding debtors increased by Rs. 30000, which indicates that customers still owe the company money.
Total Sales: Rs. 100000
Cash Sales: Rs. 200000
Outstanding Debtors: Rs. 30000
To calculate the cash received from debtors during the year, we need to use the following formula:
Cash Received from Debtors = Total Sales - Cash Sales - Outstanding Debtors
Substituting the given values in the formula, we get:
Cash Received from Debtors = Rs. 100000 - Rs. 200000 - Rs. 30000
Cash Received from Debtors = Rs. -130000
The negative value indicates that there was no cash received from debtors during the year. Instead, the outstanding debtors increased by Rs. 30000.
Explanation
Total Sales: This is the total amount of sales made during the year. It includes both cash and credit sales.
Cash Sales: This is the amount of sales made in cash. It does not include credit sales.
Outstanding Debtors: This is the amount of money owed by customers who have purchased goods on credit but have not yet paid for them.
Cash Received from Debtors: This is the amount of money received from customers who have purchased goods on credit and have paid for them during the year.
In this case, the total sales were Rs. 100000, but the cash sales were Rs. 200000. This means that a significant portion of the sales was made on credit. At the end of the year, there were outstanding debtors of Rs. 30000, which means that customers had not paid for goods worth Rs. 30000.
When we calculate the cash received from debtors, we subtract the cash sales and outstanding debtors from the total sales. In this case, the result is negative, which means that there was no cash received from debtors during the year. Instead, the outstanding debtors increased by Rs. 30000, which indicates that customers still owe the company money.
Community Answer
If total sales during the year amounted to Rs. 100000 , cash sales Rs....
Your question is wrong because
total sales = cash sales + credit sales
but here cash sales is more than sales
so it's a wrong question
total sales = cash sales + credit sales
but here cash sales is more than sales
so it's a wrong question
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If total sales during the year amounted to Rs. 100000 , cash sales Rs. 200000 and outstanding debtors at the end of the year were Rs. 30000 , then cash received from the debtors during the year will be ?
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If total sales during the year amounted to Rs. 100000 , cash sales Rs. 200000 and outstanding debtors at the end of the year were Rs. 30000 , then cash received from the debtors during the year will be ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If total sales during the year amounted to Rs. 100000 , cash sales Rs. 200000 and outstanding debtors at the end of the year were Rs. 30000 , then cash received from the debtors during the year will be ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If total sales during the year amounted to Rs. 100000 , cash sales Rs. 200000 and outstanding debtors at the end of the year were Rs. 30000 , then cash received from the debtors during the year will be ?.
If total sales during the year amounted to Rs. 100000 , cash sales Rs. 200000 and outstanding debtors at the end of the year were Rs. 30000 , then cash received from the debtors during the year will be ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If total sales during the year amounted to Rs. 100000 , cash sales Rs. 200000 and outstanding debtors at the end of the year were Rs. 30000 , then cash received from the debtors during the year will be ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If total sales during the year amounted to Rs. 100000 , cash sales Rs. 200000 and outstanding debtors at the end of the year were Rs. 30000 , then cash received from the debtors during the year will be ?.
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